(GuruFocus, January 2, 2010) It is the beginning of a new year, and the decade, time to take a look at the Model portfolios that we set up at the beginning of the last year. Available to the Premium Members only, GuruFocus set up six portfolios after the market close of 2008, based on six concepts:
GuruFocus is happy to report that all six model portfolios outperformed the S&P500 during the turbulent year of 2009.
First let’s take a look at the first portfolio, Broadest Held Portfolio.
Broadest Held Portfolio
At the beginning of each year, GuruFocus selects 25 stocks based on the number of Gurus who have hold the stock at the end of the latest quarter. Because the time lag between quarter end and deadline for Gurus to report their holdings, we have to use the data from the third quarter of the last year.
The companies selected for 2009 can be seen at the end of this article. The portfolio is updated once a year, the latest portfolio can be viewed here. Because of methodology of the selection, it is slow turning over portfolio. The 2009 portfolio still has eight stocks that were selected in 2006, one in 2007, seven in 2008, and eight in 2009. In another word, only eight stocks were changed out as of December 31, 2008.
The list of stocks in the portfolio and their performance since entered the portfolio is listed at the end of this article.
Performance
For 2009, the portfolio returned 42.34%, beating S&P 500’s 27.76% return for the year.
Since the inception of the portfolio at the beginning of 2006, the investment strategy has returned 7.54% vs. S&P500’s 12.11% loss.
In the comparison, both performances for the portfolio and the S&P 500 do not include the dividend yield.
Winners
Because the 25 stocks entered the portfolio at different times, we select the winners and losers based on their performance since they appear in the portfolio.
Health Management Associates Inc. (HMA, Financial)
Health Management Associates, Inc. operates general acute-care hospitals in non-urban communities. Services provided by its hospitals include general surgery, internal medicine, obstetrics, emergency room care, radiology, oncology, diagnostic care, coronary care and pediatric services. UnitedStates. Health Management Associates Inc. has a market cap of $1.81 billion; its shares were traded at around $7.27 with a P/E ratio of 16.1 and P/S ratio of 0.4. Health Management Associates Inc. had an annual average earning growth of 25.2% over the past 10 years. GuruFocus rated Health Management Associates Inc. the business predictability rank of 3-star.
The stock entered the portfolio since the beginning of 2009 and has returned 306.15% since then.
As of September 30, 2009, KMX was held by 6 Gurus.
CarMax Inc. (KMX, Financial)
CarMax, Inc. is a retailer of used cars. Carmax Inc. has a market cap of $5.38 billion; its shares were traded at around $24.25 with a P/E ratio of 22.5 and P/S ratio of 0.8. Carmax Inc. had an annual average earning growth of 21.9% over the past 5 years.
The stock entered the portfolio since the beginning of 2009 and has returned 207.74% since then.
As of September 30, 2009, KMX was held by 10 Gurus.
Losers
Citigroup Inc. (C, Financial)
Citigroup Inc. (Citigroup) is a global diversified financial services holding company. Citigroup Inc. has a market cap of $75.68 billion; its shares were traded at around $3.31 with and P/S ratio of 1.5. Citigroup Inc. had an annual average earning growth of 5.1% over the past 10 years.
The stock entered the portfolio since the beginning of 2006 and has declined 93.09% since then.
As of September 30, 2009, the stock was held by 17 Gurus.
General Electric Company (GE, Financial)
General Electric is one of the largest and most diversified industrial corporations in the world. General Electric Company has a market cap of $161.1 billion; its shares were traded at around $15.13 with a P/E ratio of 12.5 and P/S ratio of 0.9. The dividend yield of General Electric Company stocks is 2.6%. General Electric Company had an annual average earning growth of 12.7% over the past 10 years. GuruFocus rated General Electric Company the business predictability rank of 4-star.
The stock entered the portfolio since the beginning of 2006 and has declined 56.85% since then.
As of September 30, 2009, the stock was held by 20 Gurus.
Conclusion
Stocks held by the the most gurus has outperformed during the past year and the past the past four years (annualized). We are updating the portfolio and continue to test whether there is excessive gain to follow the Investment Gurus' collective wisdom.
GuruFocus provides real time information and insights of Investment Gurus such as Warren Buffett and Company Insiders for Premium Members. Access to details of model portfolio is just one of many benefits for premium members. If you are not a premium member, click here to sign up or upgrade. 7-Day Free Trial is available.
2009 Guru Broadest Held Portfolio
- Consensus Picks Portfolio
- Guru Bargains Portfolio
- Broadest Held Portfolio
- Most Weighted Portfolio
- Buffett-Munger Screener top 25
- Top 25 Undervalued Predictable Companies
GuruFocus is happy to report that all six model portfolios outperformed the S&P500 during the turbulent year of 2009.
First let’s take a look at the first portfolio, Broadest Held Portfolio.
Broadest Held Portfolio
At the beginning of each year, GuruFocus selects 25 stocks based on the number of Gurus who have hold the stock at the end of the latest quarter. Because the time lag between quarter end and deadline for Gurus to report their holdings, we have to use the data from the third quarter of the last year.
The companies selected for 2009 can be seen at the end of this article. The portfolio is updated once a year, the latest portfolio can be viewed here. Because of methodology of the selection, it is slow turning over portfolio. The 2009 portfolio still has eight stocks that were selected in 2006, one in 2007, seven in 2008, and eight in 2009. In another word, only eight stocks were changed out as of December 31, 2008.
The list of stocks in the portfolio and their performance since entered the portfolio is listed at the end of this article.
Performance
For 2009, the portfolio returned 42.34%, beating S&P 500’s 27.76% return for the year.
Since the inception of the portfolio at the beginning of 2006, the investment strategy has returned 7.54% vs. S&P500’s 12.11% loss.
In the comparison, both performances for the portfolio and the S&P 500 do not include the dividend yield.
Winners
Because the 25 stocks entered the portfolio at different times, we select the winners and losers based on their performance since they appear in the portfolio.
Health Management Associates Inc. (HMA, Financial)
Health Management Associates, Inc. operates general acute-care hospitals in non-urban communities. Services provided by its hospitals include general surgery, internal medicine, obstetrics, emergency room care, radiology, oncology, diagnostic care, coronary care and pediatric services. UnitedStates. Health Management Associates Inc. has a market cap of $1.81 billion; its shares were traded at around $7.27 with a P/E ratio of 16.1 and P/S ratio of 0.4. Health Management Associates Inc. had an annual average earning growth of 25.2% over the past 10 years. GuruFocus rated Health Management Associates Inc. the business predictability rank of 3-star.
The stock entered the portfolio since the beginning of 2009 and has returned 306.15% since then.
As of September 30, 2009, KMX was held by 6 Gurus.
CarMax Inc. (KMX, Financial)
CarMax, Inc. is a retailer of used cars. Carmax Inc. has a market cap of $5.38 billion; its shares were traded at around $24.25 with a P/E ratio of 22.5 and P/S ratio of 0.8. Carmax Inc. had an annual average earning growth of 21.9% over the past 5 years.
The stock entered the portfolio since the beginning of 2009 and has returned 207.74% since then.
As of September 30, 2009, KMX was held by 10 Gurus.
Losers
Citigroup Inc. (C, Financial)
Citigroup Inc. (Citigroup) is a global diversified financial services holding company. Citigroup Inc. has a market cap of $75.68 billion; its shares were traded at around $3.31 with and P/S ratio of 1.5. Citigroup Inc. had an annual average earning growth of 5.1% over the past 10 years.
The stock entered the portfolio since the beginning of 2006 and has declined 93.09% since then.
As of September 30, 2009, the stock was held by 17 Gurus.
General Electric Company (GE, Financial)
General Electric is one of the largest and most diversified industrial corporations in the world. General Electric Company has a market cap of $161.1 billion; its shares were traded at around $15.13 with a P/E ratio of 12.5 and P/S ratio of 0.9. The dividend yield of General Electric Company stocks is 2.6%. General Electric Company had an annual average earning growth of 12.7% over the past 10 years. GuruFocus rated General Electric Company the business predictability rank of 4-star.
The stock entered the portfolio since the beginning of 2006 and has declined 56.85% since then.
As of September 30, 2009, the stock was held by 20 Gurus.
Conclusion
Stocks held by the the most gurus has outperformed during the past year and the past the past four years (annualized). We are updating the portfolio and continue to test whether there is excessive gain to follow the Investment Gurus' collective wisdom.
GuruFocus provides real time information and insights of Investment Gurus such as Warren Buffett and Company Insiders for Premium Members. Access to details of model portfolio is just one of many benefits for premium members. If you are not a premium member, click here to sign up or upgrade. 7-Day Free Trial is available.
